Natural Gas Demand Will Be Driven By Asia

Despite natural gas prices falling to near 10-year lows last week, demand for gas will be much higher than oil in the long term with the Asia-Pacific region driving the sector's growth, CNBC reported quoting Royal Dutch Shell's CEO Peter Voser.

"I think you cannot travel around Asia at the moment without getting the question, 'can you sell us some LNG?'" Voser said on the sidelines of the World Economic Forum in Davos.

Voser feels that the market for natural gas has actually started to dry out and there is need for new projects.

Low demand and high inventory levels in the U.S. has deterred some companies from future investments, but according to Voser, America's waning demand doesn't reflect what is happening in the rest of the world.

"If you're talking about North American gas, clearly the current price levels are not sufficient to actually bring all the developments forward. You have seen a lot of companies starting to cut their production," Voser told CNBC.